13,042$ Trade Recap (advanced IFVG video)

Welcome back to the second channel, and in this video I'm going to be teaching you, and I'm going to be doing a full trade breakdown recap. I took 2 trades today, Wednesday the 5th of November— no, it was Thursday today, Thursday the 6th of November. And specifically, I'm going to be going in depth on the higher time frame analysis and how you are going to use higher time frame analysis to actually catch trades on the lower time frame and make things more simple to you. Okay, if you don't know who I am, I am Trader Louie. I've been live streaming myself trading for 2 years. I've been trading for just under 5 years. I have a community with over 38,000 members, and I have made a whole lot of money from trading, specifically using fair value gaps and liquidity, otherwise known as inversion of fair value gaps. So let's jump straight into this video, and starting with the daily time frame. So with the daily time frame, you want to look for something It's obvious. And right now, what I normally do is basically use my strategy on the higher time frames the same as I do on the lower time frames. Because if you didn't know, time is fractal. So what that means is what happens on the higher time frames should happen on the lower time frames, and vice versa. What happens on the lower time frames should also happen on the higher time frames. So what I'm looking for is any fair value gaps that have been embossed, any unmitigated fair value gaps, any nice shorts on liquidity that we might want to target on the lower time frame. So as you can see, we're respecting this bearish fair value gap here. There's not a whole lot to work with. We have all-time highs above, we have this unmitigated fair value gap, we obviously have this nice daily low there as well. So we've not got a whole lot to work from, but we do have some things to work from, mainly this daily unmitigated fair value gap. So So looking at this chart and going into today, I said what is most likely going to happen and what is most likely to draw liquidity as of right now, looking at the daily chart, is this unmitigated fair value gap. So if we jump to the 4-hour time frame, that actually changes, okay? And this is very important. So we're looking at the 4-hour time frame, and this is what price action looked like at open. So this right here is that daily unmitigated fair value gap that I marked. This right here is that low. Now what do you notice on the 4-hour that's different to the daily? We have this bullish fair value gap. So what I said is we could potentially get a nice move down to this bullish fair value gap and still target and still prefer long positions, right? I still would prefer long positions. The only way that I would prefer short positions here is if we got a bearish candle close below this bullish fair value gap. Now remember guys, I am not just saying this in hindsight. You can click the link in my bio. I do this every single day live on stream in front of hundreds of people, okay? Click the link in the bio, you can join for free. So what I said was, if we get a candle close here, we're most likely going to go down here. I said if we respect this bullish fair value gap, or if we don't even tap into it, then I most likely want the highs. So now let's trade, let's jump to the lower time frames and see what actually happened. We had no red folder news today also, and Yeah, that was just my high time frame analysis. And at open here, Thursday, yeah, at open we didn't really have much. We had a nice 15-minute— we had 15-minute equal lows, I believe. We had this low down here. We, yeah, we had this low down here, which is also those equal lows, as you can see. But we just dropped straight away. And what's very important to know is when we just come down like this is don't try and rush anything. You haven't missed the move. A lot of new traders would see price action like this and think, oh damn, we, we missed the move, what do we do now? But you just have to be patient. We get this at 9:50. The reason why shorts are not good here to take is because it was a 2-minute 5-hour value gap, I believe. Yeah, 2-minute 5-hour value gap, as well as this. We already took the lows on ES. So the reason why you shouldn't enter into shorts here— we took the lows on ES as we have not took them on NASDAQ, and we also have a 2-minute value gap. So not a good trade to take. A lot of people took this long position. This is not a bad long position to take. We had this impulse from this bearish fair value gap, also the 3-minute bearish fair value gap, and this was a 4-minute unmitigated fair value gap, and we were very correlated with ES. So if you took this long position, I did not think that was a bad long position. And I did think that this short wasn't that clean because we— well, because of the reasons I just said. So, and also as well, for shorts right here, even if you wanted to be a bit aggressive, remember what I said about the higher time frame. If we were to look at the 4-hour time frame as of right there, we wouldn't see where this candle closes yet. So we're waiting for 10 AM. So fun fact as well, 10 AM is always the candle that will close the 4-hour candle. So that's very important to note. Then of course at 10 AM we get this 10 AM candle close, and now we have officially inversed this 4-hour fair value gap, as you can see. So because we've inversed this 4-hour fair value gap, where do I think that price action is most likely going to go? I think that price action is most likely going to go for the, um, for the lows. Simple as that. And what, what do you want to happen if you want to look for short positions? You want a nice move up and then you want a short position, something like this. That would be the best case scenario, which, which in my opinion, the higher time frames are just— it's so clear where the target wants to be. We also had this low right here. We obviously had the swing low. We've perfectly— look how we've inverses for our 5-hour gap. You know, we, we failed to tap into the daily unmitigated, then we got this nice displacement candle down. It looks pretty obvious where we want to go. And this is what is so important with trading as well. You're not— you can't be mechanical, okay? Not only that, look how close we came to taking this low here. This short position right here This was okay. Yeah, so this— I haven't spoke about this, then that confused me. So yeah, we come down here, so we, we don't take this trade. We come down, we've got a bit of consolidation, and then we get this bullish fair value gap which we impulse. Now this was an amazing trade to take. Firstly, we have equal lows, we have equal lows, and we have the 4-hour swing low. The 4-hour swing low that is right here— sorry, it's not a swing low, this is a 4-hour internal liquidity that is right there. We inverse this bullish 5-eye gap with displacement. We are also correlated with ES. Your breakeven point's right there, or you can even put your breakeven point here. And of course you're targeting the lows. Pretty straightforward trade. We came up, tapped into a 5-minute unmitigated. The daily bias and the drawn liquidity now is bearish. So very, very obvious trade to take. I assume most of you inversion 5-eye gap traders took this, but it was just a breakeven trade. So that happened to be breakeven, a very nice trade. And And then we get this potential more aggressive trade, let's say. It's definitely more aggressive. Firstly, we have this 3-minute that inverses very, very nicely. Of course, with the reason why we don't take this 3-minute is simply because the 2-minute fair value gap is not inversed, same as the 1-minute fair value gap. Now, what is also important to note, and if you made it this far into the video, I'm about to drop a little gem. When we come so close to a shrink draw on liquidity like this, look how close we came to it. Let's keep— I'm going to keep it simple for you. When we come so close to a draw on liquidity like this, what happens? We're most likely going to come to that draw on liquidity. It's very simple. A strong draw on liquidity being this 4-hour low. Look how close we came to it. We didn't take it. Price is most likely going to take it. And of course, let's not, let's not forget the 4-hour being inverse, the obvious lows that we want. So the 3-minute just inverse. We have this 1-minute, we have this 2-minute. The 2-minute is obviously a bigger fair value gap, and the 2-minute fair value gap impulse is right here. Could you enter right here? Yes, you could enter right here. A bit more of an aggressive entry. The reason why it's more aggressive is because the 1-minute hadn't impulsed yet. So as we can see, this 1-minute— 1-minute failed to impulse, but on this next candle, we get a horrible candle close below the 1-minute fair value gap. So as you can see, this is a horrible candle close, and we just closed below this fair value gap. But now we look at the 2-minute, look at how we have closed a decent amount below the 2-minute fair value gap. So in my opinion, this is more of an advanced trade. I don't expect the newer traders to be taking these trades straight away, but think of all the context that I've just mentioned— the, the daily, the bias, the draw liquidity, the fact that we're so close to this low. We have equal lows. We also have this swing low down here, which is the 4-hour swing low. Everything is leading for us to go down. There's, there's nothing that shows us we want to go up right now. Look at the strong displacement on this 2-minute candle. So because this candle isn't very nice on the 1-minute, you— it still is a candle close. So if this was just a 1-minute 5-hour gap, I'm not taking a trade from this 1-minute, okay? Because it's such a bad close. But because this is a 1-minute and a 2-minute, and we get the close below the 2-minute, which is nicer, You enter from the 2-minute value gap, use the 1-minute as confirmation. We've already embarrassed the 3-minute. And yeah, you just— you want the 4-hour obvious lows right there. And that is how I played today. I took 2 trades, 1 breakeven, and then this trade which was not a breakeven. Now what is also interesting to note, the breakeven trade is a better trade to take than this trade right here. But it's trading, you know, not all the good trades are going to work and not all the bad trades are going to fail. You know, that's just how trading works. I hope you found this video useful. Remember, click the link in my bio if you want more trade recaps, and I'll see you all tomorrow in the live stream. Let's keep it up, especially if we keep getting this amazing price action.